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TMCNet:  Government of Canada Helping Create Jobs in Niagara Region With Internet Technology Developer

[February 20, 2013]

Government of Canada Helping Create Jobs in Niagara Region With Internet Technology Developer

ST. CATHARINES, ONTARIO, Feb 20, 2013 (Marketwire via COMTEX) -- Thanks to an investment from the Government of Canada, IIX Corp. (International Internet Exchange) will commercialize and enhance its Internet technology, which allows users to send large amounts of information more directly and at lower costs than traditional Internet traffic. The investment was announced today by Rick Dykstra, Member of Parliament for St. Catharines, on behalf of the Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).


"Our government continues to make the economy a top priority," said MP Dykstra. "That is why we are pleased to support IIX Corp. in this project to further develop its innovative Internet infrastructure technologies while creating high-value jobs, regional economic diversity, and a competitive advantage for southern Ontario." Under FedDev Ontario's Investing in Business Innovation initiative, IIX Corp. will receive up to $225,000 to commercialize and enhance the hardware and software infrastructure for its network of Internet exchange points (IXPs) - technology that routes digital information more directly between high-volume users than traditional Internet service providers' methods. Routing information through IXP networks results in fewer errors, decreased user costs and increased traffic speeds.

FedDev Ontario's investment has also enabled IIX Corp. to attract private investment of up to $450,000 from members of the Niagara Angel Network and the Golden Triangle Angel Network.

The company created IIX Grid, North America's first independent network of IXPs, in 2011. This project will build on the success of that network by expanding capacity for its users and will position the company to increase its North American market share. It is expected that the project will create up to 12 high-value full-time jobs in the Niagara region.

"We are focused on expanding our IIX Grid solution across North America to enable more organizations to participate in direct network peering in multiple markets," said Al Burgio, CEO of IIX Corp. "FedDev Ontario's investment will contribute to our ongoing expansion and the delivery of our solution across our industry." For more information on this project and the Investing in Business Innovation initiative, please refer to the backgrounder.

The Investing in Business Innovation initiative is designed to boost private sector investment in start-up businesses to accelerate the development of new products, processes and practices and help bring them to market. Funding under the initiative is also available for angel investor networks and their associations to attract new investment and support the growth of angel investment funds. Applications for funding are being accepted and assessed on an ongoing basis. For more information, please refer to the program guidelines available on the FedDev Ontario website.

Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. The Agency has launched a number of initiatives to create a Southern Ontario Advantage and place the region in a strong position to compete in the global economy. These initiatives are designed to encourage partnerships and support projects that help the region's businesses and communities become more competitive, innovative and diversified. To learn more, please visit www.FedDevOntario.gc.ca or call 1-866-593-5505.

Follow us on Twitter @FedDevOntario.

IF THERE IS A DISCREPANCY BETWEEN ANY PRINTED VERSION AND THE ELECTRONIC VERSION OF THIS NEWS RELEASE, THE ELECTRONIC VERSION WILL PREVAIL.

This news release is available online at: www.FedDevOntario.gc.ca.

BACKGROUNDER Contribution to IIX Corp. (International Internet Exchange) St. Catharines-based IIX Corp. has created IIX Grid, North America's first independent network of Internet exchange points (IXPs).

An IXP network is a combined physical and software infrastructure platform for routing digital information over the Internet. Independent IXP networks, such as IIX Grid, are considered "neutral" because they are separate from Internet service providers (ISPs), whose normal practice of charging per use for routing can increase the number of transfer points, create slower travel times, and increase costs for sending digital information across the Internet in comparison with an IXP network.

The significant improvements in speed and cost available to IIX Grid users have attracted many users, including broadcasters, online search engine operators, and free email account providers across North America.

The company develops and maintains both the physical infrastructure - hardware including storage and network switching devices, servers and fibre cables - and the software infrastructure required for their network of IXPs, allowing it to provide more reliable service to its clients. With the further enhancement of the network and services involved in this project, the company is poised to grow significantly and gain market share in North America.

FedDev Ontario is providing IIX Corp. with a repayable contribution of up to $225,000 to help complete the testing of its hardware and software to commercialize and enhance its IIX Grid routing system. It is expected that the project will create up to 12 full-time jobs in the Niagara region.

Investing in Business Innovation Investing in Business Innovation provides improved access to financing for start-up businesses, boosts private sector investment in start-up businesses, and helps accelerate the research and development of new products and ideas and bring them to the marketplace.

The initiative addresses the development and commercialization challenges faced by start-up businesses in southern Ontario by helping them to obtain angel and venture capital investments in the development of their businesses.

For more information, please refer to www.FedDevOntario.gc.ca.

FOR FURTHER INFORMATION PLEASE CONTACT: Stephanie Thomas Press Secretary Office of the Honourable Gary Goodyear 613-960-7728 Media Relations FedDev Ontario 416-954-6652 SOURCE: Canada's Economic Action Plan

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